Significant changes to the welfare system are underway, with the Department for Work and Pensions (DWP) setting a clear deadline for moving claimants off legacy benefits. Sir Stephen Timms, the Minister for Social Security and Disability, has confirmed the department intends to complete the migration of claimants on income-related Employment and Support Allowance (ESA) to Universal Credit by March 2026.
Parliamentary Assurance on Migration Protections
The minister's statement came in a written response to a query from Labour MP for Portsmouth North, Amanda Martin. She had raised concerns about whether disabled claimants receiving Personal Independence Payment (PIP) and legacy benefits would be treated as new claimants during the shift, potentially facing a reduction in their income.
Sir Stephen Timms provided clarity, stating that ESA claimants will be migrated to the Universal Credit Health Element. To protect those who have not moved by April 2026, the DWP plans to "mirror as closely as possible the changes made in Universal Credit in the ESA rates."
He explained that adjustments to the ESA support component and the severe and enhanced disability premium rates will reflect changes to the Universal Credit Limited Capability for Work and Work-Related Activity (LCWRA) rates for existing claimants. "Including these commensurate measures aims to give fair treatment for all customers moving onto Universal Credit from income-related ESA, regardless of their point of migration," he added.
Major Overhaul: The Universal Credit Act
These changes are part of a broader legislative overhaul. The recently enacted Universal Credit Act seeks to rebalance the core payment and health top-up. A key feature is a permanent, inflation-beating increase to the standard allowance, which is set to rise by £725 in cash terms for a single adult aged 25 or over by 2029/30.
Concurrently, the health top-up for new claims will be reduced to £50 per week from April 2026. However, all existing recipients of the Universal Credit health element, along with new claimants who meet the Severe Conditions Criteria or the Special Rules for End of Life (SREL), will continue to receive the higher payment after this date.
The DWP states these reforms address a "fundamental imbalance in the system which creates perverse incentives that drive people into dependency." The Institute for Fiscal Studies notes this represents the highest permanent real-term rise in the main rate of out-of-work support since 1980.
New Support and Safeguards for Claimants
Alongside the migration, the DWP has introduced several new provisions designed to support disabled people and those with health conditions. A central policy is the 'Right to Try Guarantee', which allows individuals to attempt work without the immediate fear of a benefits reassessment.
Furthermore, a major review of the PIP assessment process is being co-created with disabled people and their representative organisations, led by Disability Minister Sir Stephen Timms. The department has pledged £3.8 billion over the Parliament for tailored employment, health, and skills support, building on programmes like Connect to Work.
For the most vulnerable, there are additional guarantees. All existing health element recipients and new customers with 12 months or less to live, or who meet the Severe Conditions Criteria, will see their combined standard allowance and health element rise at least in line with inflation every year from 2026/27 to 2029/30.
"This means they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them," a DWP spokesperson said.
